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Metals and Mining: Winners & Losers

NEW YORK ( TheStreet) -- Haynes International (HAYN - Get Report), AK Steel Holding (AKS) and Alexco Resource (AXU - Get Report) outperformed other stocks last week, while Platinum Group Metals (PLG), Consol Energy (CNX) and North American Palladium (PAL) lost a significant portion of their stock value.

Haynes International, producer of nickel- and cobalt-based alloys in sheet, coil and plate forms, emerged top gainer last week, accumulating 14.2%. AK Steel Holding followed, gaining 10.5%, after the company said its first-quarter 2011 seems to be improving. The company expects shipments to rise by 7%, with prices increasing by 8%. Industry analysts foresee the company returning to profitability in 2011. The results include a quarterly cash dividend of 5 cents per share, payable on March 10, 2011.

Alexco Resource gained 10.1% last week after announcing new drilling results and discovering silver, zinc and lead at its Bermingham property in the Keno Hill silver district, Yukon Territory. Alexco Resources has announced additional results from the 2010 surface core-drilling program at the property, confirming the presence of significant silver mineralization with minor base metals, beginning approximately 150 meters from surface and extending at least 200 meters down, where it remains open. Patriot Coal (PCX) was up 9.8% last week.

Endeavour Silver (EXK - Get Report) added 9.4% last week, after the company forecast, for the seventh consecutive year, production growth and lower cash costs for 2011. Endeavour Silver estimates 2011 silver production to exceed 3.7 million ounces, while gold production could surpass 19,000 ounces. In addition, cash costs are likely to decline from $5.93 per ounce in the third quarter.

Meanwhile, Allegheny Technologies (ATI - Get Report) was up 9.2%, subsequent to earnings announcement. For 2010 fourth quarter, revenue increased multi-fold to $1.04 billion from $815.7 million in the year-ago quarter. Net income and revenue were up 123% and 32.8% for full-year 2010, respectively, compared to 2009. Looking ahead, sales are seen rising 15%-20% during 2011.

Massey Energy (MEE) gained 8.6% last week. A Trefis analyst said increasing coal demand will boost the company's revenues. Analysts estimate revenue to reach $83 per ton in 2011 from $54 in 2009 and touch $100 going forward. Meanwhile, Alpha Natural Resource (ANR) $7.1 billion takeover bid of Massey will lead to the creation of the world's third-largest coal producer.

Among other major coal companies, International Coal Group (ICO), Cloud Peak Energy (CLD) and Walter Energy (WLT) were up 7.4%, 6.4% and 5.8%, respectively. The coal sector is supposedly entering the early stages of a long-term super cycle for coal, as demand from Asia, especially India and China, is on a roll.

Alliance Resource Partners (ARLP - Get Report) accumulated 5.4%, after reporting impressive fourth-quarter and annual financial results. Revenue for the fourth quarter and full-year 2010 was up 40.4% and 30.8%, respectively, compared to the year-ago period. Meanwhile, the company has also raised its dividend by 3.6% on a sequential basis to 86 cents per share for the fourth quarter.

Platinum Group Metals was the top loser last week, down 4.7%. Consol Energy declined 4.6% after the company reported a 27% drop in its fourth-quarter net profit. Net profit stood at $104 million, or 46 cents per share, as compared to $143 million, or 78 cents per share, in the year-ago quarter. North American Palladium dipped 4.4% last week. However, the company announced that it intends to ramp up production at its Lac des lles mine, located in north western Ontario, by 75%.

Yanzhou Coal Mining (YZC) slipped 3.9% during the week. Last week the company said its board has approved to bid for mining rights in a coal-mine zone in China. Randgold Resources (GOLD) dropped 3.9%. HSBC analysts narrowed their price target from $107 to $103. Additionally, Zacks Investment Research downgraded Randgold from neutral to underperform. Vale (VALE) declined 3.6%.

Other major losers include Gold Fields (GFI - Get Report), Carpenter Technology (CRS) and POSCO (PKX), sliding 3.2%, 3.2% and 2.5%, respectively.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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